Analysis of major stock markets around the world.
Posted August 3, 2011 8:00 p.m. ET (10:00 a.m. AET) on Trading Diary.
The FTSE 100 followed through below 5600 after breaking primary support at 5650, confirming a primary down-trend.
The DAX similarly broke primary support at 7000 on the weekly chart and is now testing its earlier support level at 6500 — breach of that would be the final nail in the coffin. Bearish divergence on 13-week Twiggs Money Flow has been warning of selling pressure for several months.
Posted August 3, 2011 8:00 p.m. ET (10:00 a.m. AET) on Trading Diary.
The long tail on today’s candle for the Dow Jones Industrial Average indicates buying support, but 21-Day Money Flow below zero warns of longer term selling pressure. Only recovery above the rising trendline would call the bear signal into question. Follow-through below today’s low at 11700 would confirm the primary down-trend — as would a close below 1250 on the S&P 500.
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